First Time buyer with 2 defaults

freyamae

Apologises if this is in the wrong place, please feel free to move.

Me and my husband have seen a property which is a shared ownership resale that we would love we went to see a local mortgage broker who did a soft search with Hailfax based on our info and in short computer says no! I assume it is due to 2 defaults I have dating from 2008 these were for £12 and £630 respectively and have been paid up in full.

However I realised while we were chatting to the advisor that my husbands bank and employer are still both registered at his parents address even though we have lived together for 5 years! This is purely down to his laziness and I have chased him up on it many times. His mobile mill, electoral role, council tax bill and car insurance are through our address.

My question is do we have any other options or should we just wait till my defaults disappear before trying again?

Full Details are as follows

Husband earns £16,000 no credit cards and a bank balance of over £2000 and around £7000 in savings with Santander.

I earn £15,500 3 credit cards with under £2000 of debit, bank balance is in credit ( just ) and bank with barclays.

2 children who will live with us at property.

Property is a shared ownership resale £75,000 for a 50% share and £183 rent to pay on the other half.

We have at least a 10% deposit but could stretch to 15% but probably not 20%.

I would like to try Santander as husband banks there but he is reluctant due to it being a full credit check and them likely to say no again anyway. Any thoughts appreciated and if you think we don't have a hope that's fine we will just have to wait a bit longer!

kingstreet

Forget Santander, they won't touch anything with adverse.

Who were the creditors on the defaults? Were they registered at your current address? What were the registration and satisfaction dates? On which version(s) of your credit file do they appear?

What are your childcare costs? Any maintenance payments to previous partners? No other credit than what you've disclosed?

Pixie5740

It might be a good idea to see a mortgage broker (whole of market) as they should be able to advise you about lenders willing to offer mortgages to someone with defaults.

freyamae

Thanks they are on current address and the credit report was equifax the settled date on one is January 2009 and the other April 2009 although the default date on both is August 2008 and im sure I paid them off pretty soon after they were both a catalogue company.No other debts although we both have mobile contracts these are up to date and car is paid for. No childcare costs as they are 12 and 15 and we don't pay out maintenance but do receive £100 a month.

The broker we went to said they were whole of market but did the soft search on Halifax and then when that was a no didnt offer us any alternatives which I thought was odd. If we have to wait another year or two it isn't the end of the world its just that property was a really good position for us.

Rovver125

We were in a position not dis-similar to yours back at the beginning of this year. Not a hope in hell with any of the mainstream lenders, partner with two defaults & a messy credit file, but a reasonable deposit & reasonable income.

We had all but given up, thinking we would have to wait at least 18 months to buy our first home together.

With the help of a broker we made contact with on here, we have been in our first home for 6 months now! The lender might not be a mainstream one, but the rate is still sub 5% & by the time the fixed deal ends, my partners credit file should be sorted & we see no reason we shouldn't be able to switch to a more mainstream lender.

Even though the house has been a bit of a nightmare, we have no regrets about doing it the way we did & were very happy with the broker we used!

If it's what you want, it might be more a fight to get it & might cost a little more, but it certainly could be possible! Don't rule it out until you've explored all options

Rovver125

P.s. you'll probably find this post would be better on the mortgages board. Good luck with it!

kingstreet

Obtain other versions of credit file and establish if the adverse is visible on all three, or if one is clear. It does happen sometimes and often lenders use only one of the three.

Experian

http://www.experian.co.uk/consumer/statutory-report.html#orderReport

CallCredit

https://www.callcredit.co.uk/stat-report-online/index.php?action=basket_add&tpl=setRegister&package=63&amount=1&mode=clear

Your broker sounds a bit of a plank, TBH. Why you would trust a Halifax soft search on an adverse case, I don't know. Sounds like someone looking for an easy life and not really putting any effort in. It's possible that even if it did pass a DIP with Halifax, it could have been declined at full application anyway.

freyamae

Thanks Kingstreet I thought that to be honest claims to be a whole market broker but only offered us one option! I had laid our cards on the table from the word go so he knew what the situation was I guess we were too much effort for the money! I think I will look again I dont mind paying slightly over the odds for a short time and we may be able to increase our deposit to 20% after all and will have a large injection of capital in a few years anyway. If not we sit it out 18 months and try again!

koneko

We are in the same position as you right now. We have a 15% deposit sand good affordability but 2 defaults from the end of 2008.

We went to a fee charging broker after trying a fee free one and finding she was not helpful. Our broker suggested Halifax as well initially and the AIP came back as a yes, but we were declined at full app.

He's suggested Kensington as the fallback plan. Interest is over 1% higher, but still below 5%.

ViolaLass

Is your debt on 0% or would you be better off paying it off and saving the money again?

kingstreet

koneko wrote: »

Our broker suggested Halifax as well initially and the AIP came back as a yes, but we were declined at full app

... and there's the proof!

This should be possible on the high street, if the defaults are more than three years old and there are less than three.

Halifax is the option of choice for the lazy or inexperienced broker, then when that doesn't work, it's off to the likes of Kensington.